How to Develop a Risk Parity Style Portfolio

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Long-term treasury bonds represented by the fund VGLT were also down 2.87% for the week on the panic reaction. Gold was up 0.94% for theweek. Reads represented by the funds REET, PDBC and PFF were down 1.10%-1.54%. Managed futures representing the fund DBMF were down fractionally. They were really flat. Moving to these sample portfolios the first one is this all seasons. This is that classic risk parity style portfolio we talked about earlier. We keep it there as a reference portfolio but it's only 30% in stocks. The next three correspond with the way we've modified risk parity

In this episode we answer an email from Judy. We discuss a 2013 Michael Kitces article about risk parity, which aspects we have incorporated and which we have not (and why), and then talk about an interview of William Bernstein about his new book and some related thoughts and ramifications about bonds, crystal balls, annuities and other things. (Note: I think I said it was the 4th edition, but its really just the 2d.)

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

2013 Michael Kitces Risk Parity Article: Microsoft Word - Kitces Report November-December 2013 - RISK PARITY - FINAL

Morningstar Long View Interview of William Bernstein: Bill Bernstein: Revisiting The Four Pillars of Investing | Morningstar

Morningstar Long View Interview of Aswath Damodaran: Aswath Damodaran: A Valuation Expert’s Take on Inflation, Stock Buybacks, ESG, and More | Morningstar

Factor Investing Book: Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today by Andrew L Berkin | Goodreads

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